Ukraine's Tourist Tax Revenue Surges by a Third: Regional Leaders and Laggards

Tourist Tax Revenue in Ukraine for 2023

According to Главком: In 2023, Ukraine collected 359 million hryvnias in tourist tax, marking a one-third increase from the previous year and a 1.5-fold rise compared to 2021. Companies contributed the majority of this sum, accounting for 55% or 200 million hryvnias, while individual entrepreneurs (FOPs) were responsible for the remaining 45%, or 159 million hryvnias. The highest revenue from this tax was generated by Kyiv, Lviv Oblast, and Khmelnytskyi Oblast. This levy is typically applied to accommodation services and serves as a key indicator of tourism activity.

Regional Breakdown of Tourist Tax Revenue

Kyiv accounted for a significant 20% of the national total, equating to 70.6 million hryvnias. Lviv Oblast contributed 18% (63.15 million hryvnias), and Khmelnytskyi Oblast provided 13% (46.17 million hryvnias). In most Ukrainian regions, individual entrepreneurs form the larger share of the tax base, whereas companies are the primary contributors in only seven oblasts. For instance, in Cherkasy Oblast, companies make up 84% of the tax, with FOPs at 16%. In Kyiv, these figures are 81% and 19%, respectively. Conversely, in Chernivtsi Oblast, FOPs account for 89% of the tax, with companies contributing a mere 11%.

The regions with the most significant year-on-year growth in tax revenue include:

• Rivne Oblast, where receipts grew 1.6-fold;
• Sumy Oblast, with a 1.5-fold increase;
• Kyiv, Ternopil, Odesa, and Mykolaiv Oblasts, all showing growth of 1.4-fold.

Furthermore, substantial growth compared to the period before the full-scale invasion was recorded in Ivano-Frankivsk Oblast-a 4.5-fold increase-and Chernivtsi Oblast, with a 4.3-fold rise.

Despite the overall national increase, several regions saw their tax revenue decline compared to 2021. The most significant reductions occurred in:

• Mykolaiv Oblast - down 75%;
• Odesa Oblast - down 25%;
• Kharkiv Oblast - down 59%;
• Chernihiv Oblast - down 17%.

This data highlights the varied dynamics of tourist tax collection across Ukraine's different regions.

The growth of Ukraine's tourist tax in 2023 indicates a gradual recovery of the tourism sector following the pandemic and military conflict. - Source: analytical report

The highest revenues from Kyiv, Lviv, and Khmelnytskyi Oblasts likely reflect these areas' popularity with visitors. Meanwhile, regions that experienced a decline in tax collection may be facing the adverse effects of the ongoing conflict or other economic challenges, underscoring a need for government attention to support local businesses and restore tourism.